A Blueprint for Investment Writeups

A high-quality investment report is not just a company summary. It is a structured argument proving that the market is mispricing a company’s future value creation engine—whether that engine is organic growth, margin recovery, scale economics, or a repeatable capital-reinvestment roll-up. A great report proves this through primary research, unit economics, capital allocation analysis, management diligence, and scenario valuation.

1. What a High-Quality Report Seeks to Prove

The hidden structure is:

This is a mispriced business because the market is discounting its core value driver, leaving a clear variant view showing how that driver will compound over time.

A strong investment thesis typically rests on five key pillars:

1. Value Creation Engine: How the company generates returns (e.g., pricing power, scale cost advantage, roll-up acquisitions, or network effects).
2. Growth Runway: The geographic or market expansion runway, market fragmentation, or customer base headroom.
3. Execution Quality: Management’s ability to convert raw potential into operational results (e.g., improving margins, scaling units, or integrating assets).
4. Capital Reinvestment Discipline: How effectively management redeploys cash flow (reinvestment, buybacks, or debt paydown) to maximize long-term equity value.
5. Market Mispricing (The Variant View): Why this opportunity exists today (e.g., lack of analyst coverage, complex structure, temporary cyclical headwinds, or tight ownership).

For example, a high-quality report’s table of contents (methodology, economics, operating segments, management, valuation, and variant view/catalyst) reveals a clear logical progression: how it was researched → how the business works → which segments matter → whether the company can compound → what it is worth → why the opportunity exists.

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2. Section-by-section map

Report section	Purpose	Core investment questions	Data required	Best sources	Analytical steps
Situation Overview / Key Insights	Give the full thesis in one page.	Why is this attractive? What is the upside? What is misunderstood? What are the top risks?	Market cap, EV, debt, ownership, ROIC/ROCE, revenue/EBIT/NOPAT history, key thesis points.	Company filings, financial database, annual reports, insider filings, own model.	Build the full model first, then compress the conclusion into 3–5 key insights.
Methodology	Establish credibility and show research edge.	Why should the reader trust this? What work was done that the market has not done?	List of primary calls, filings reviewed, transcripts, expert networks, trade sources.	Filings, transcripts, Tegus/expert calls, former employees, customers, competitors.	Separate public data from primary research. Avoid using material non-public information. For example, in the case of TerraVest, the research process utilized filings, transcripts, Tegus, the CEO, 11 former employees, 3 customers, 2 competitors, and other primary sources.
Economics	Explain how the company makes money and what drives returns.	What is the business model? What is the return on capital? Are earnings cash-like? What drives margins?	Segment revenue/profit, gross margin, EBIT margin, ROCE/ROTC, working capital, capex, D&A, leases, debt.	Annual reports, MD&A, segment notes, footnotes, CapitalIQ/TIKR/Koyfin, company presentations.	Reconstruct economic returns. Adjust EBIT for leases, maintenance capex, acquisitions, minorities, tax. Identify the true cash earnings base.
Business Model / Acquisition Engine	Show how value is created.	Does the company create value by organic growth, pricing, restructuring, acquisitions, or capital allocation?	Acquisition list, purchase prices, acquired revenue/earnings, post-acquisition margins, deal rationale.	Filings, press releases, purchase price allocation notes, M&A announcements, management interviews, former employees.	Build a deal table: date, target, price, revenue, earnings, P/S, P/E, margin before/after, estimated post-restructuring return.
Segment Deep Dives	Prove the thesis at the operating level.	Which segments really matter? Where is the moat? Which segments are declining? Which have restructuring upside?	Product-level economics, customers, suppliers, competitors, demand drivers, regulation, unit margins.	Customer calls, competitor calls, trade associations, government data, industry reports, pricing sheets, distributor catalogs.	Pick the most important segments, then build unit economics and industry structure. Focus heavily on the most critical operating segments. For instance, in the case of TerraVest, a report would deep-dive into storage tanks and boilers/furnaces rather than listing every minor product line.
Competitive Advantage	Explain why returns are sustainable.	Why can this company earn more than competitors? Is the advantage scale, cost, brand, switching cost, route density, technology, regulation, or culture?	Market share, number of competitors, pricing power, input costs, lead times, customer stickiness.	Competitors, customers, suppliers, trade publications, import/export data, channel checks.	Identify the actual advantage, not a generic “moat.” Identify the actual advantage, such as scale purchasing power, shared manufacturing, delivery speed, or integration discipline.
Management	Decide whether you are underwriting people.	Are incentives aligned? Are they good capital allocators? Are they honest? Are they empire builders? Is there key-person risk?	Insider ownership, compensation, open-market purchases, related-party dealings, board structure, career history, capital allocation record.	Proxy circular, insider filings, annual reports, LinkedIn, interviews, litigation searches, former employee calls.	Build a management scorecard: ownership, pay, track record, mistakes, references, governance, culture, succession. Build a scorecard of the team. For example, treat the company as an investment in the execution of both the operating model and the competence of the core execution team (such as Dustin Haw).
Valuation	Convert the thesis into expected return and downside.	What is normal cash earnings? What can earnings become? How much capital can be redeployed? What multiple is fair? What is downside?	Current NOPAT, pro forma acquisitions, EBITDA, leverage, acquisition capacity, reinvestment returns, peer multiples, historical multiples.	Filings, model, company history, M&A comps, peer valuations, debt agreements, market data.	Value both current economics and future capital deployment. The model should project adjusted NOPAT, reinvestment capacity, target multiples, and distinct scenario cases (base, bear, bull).
Variant View & Catalyst	Explain why the opportunity exists and how it closes.	What does the market miss? Why is the stock cheap? What changes investor perception?	Sell-side coverage, ownership, liquidity, short interest, institutional ownership, investor writeups, historical volume.	CapitalIQ, Bloomberg, S&P, TIKR, filings, ownership data, VIC/SumZero/Seeking Alpha, conference transcripts.	Identify whether you need a catalyst or whether compounding itself is enough. Determine whether a specific near-term catalyst is needed, or whether organic compounding and market discovery are sufficient.

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3. The core research logic

A high-quality investment report typically follows this logic:

First, identify the value creation engine.

For a roll-up, the value creation engine is not just the physical products. The engine is:

Buy small niche businesses cheaply → improve margins through cost/restructuring → generate cash → buy more businesses → repeat.

For another company, the engine may be different:

Company type	Value creation engine
Compounder	High ROIC reinvestment over long runway
Turnaround	Margin recovery / asset sale / restructuring
Cyclical	Normalised earnings recovery
Roll-up	Acquisition spread + integration discipline
Platform company	Network effects / scale economies
Consumer brand	Pricing power + distribution + loyalty
Asset play	Hidden asset value / liquidation value
Software	Retention + pricing + low marginal cost

Before writing anything, answer:

What variable actually drives intrinsic value?

Do not start with “company overview.” Start with the value equation.

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4. How to analyse business quality

Use this framework.

A. Economics

Ask:

• What is the company’s true return on capital?
• Is accounting EBIT close to cash earnings?
• Is capex maintenance or growth?
• Does working capital consume cash as the business grows?
• Are margins stable through cycles?
• Are high returns from real advantage or temporary conditions?

Required data:

• 5–10 years revenue, gross profit, EBIT, EBITDA, net income.
• Operating cash flow, capex, D&A, lease expense, working capital.
• Segment revenue and segment profit.
• Asset base: PP&E, working capital, goodwill, intangibles, leases.
• Tax rate, minority interests, pension, debt.

Key calculations:

ROIC / ROTC = NOPAT / tangible capital
Cash NOPAT = normal EBIT after tax, adjusted for capex vs D&A and minorities
FCF conversion = FCF / NOPAT
Incremental margin = change in EBIT / change in revenue
Working capital intensity = working capital / revenue
Maintenance capex ratio = maintenance capex / D&A

A strong report does this by focusing on ROTC, ROCE, working capital, margins, capex relative to D&A, and cash NOPAT rather than just reported EPS.

B. Demand quality

Break demand into:

• Replacement demand: more stable, less discretionary.
• Growth capex demand: depends on customer expansion.
• Cyclical demand: tied to housing, industrial activity, commodity prices, ad budgets, consumer spending, etc.
• Regulatory demand: driven by compliance deadlines.
• One-off demand: dangerous to capitalise at a high multiple.

For each revenue stream, write:

Revenue = volume × price × mix
Volume = installed base × replacement rate + new demand
Price = list price ± discounts ± mix

C. Margin quality

Do not just say “margins are improving.” Explain why.

Margin drivers:

• Pricing power.
• Input cost pass-through.
• Supplier discounts.
• Labour productivity.
• Factory utilisation.
• Product mix.
• Automation.
• Sales incentives.
• Distribution/channel economics.

Segment deep-dives are strong when they convert operational improvements into unit economics: price, raw materials, shipping, labour, other COGS, and gross margin changes before/after acquisition. That turns a vague claim into measurable economics.

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5. How to analyse industry structure

For each segment, answer:

Market structure

• Is the industry fragmented or consolidated?
• How many competitors matter?
• Are competitors rational?
• Is pricing local, national, or global?
• Are products expensive to ship?
• Is there excess capacity?
• Are customers concentrated?

Customer behaviour

• Who makes the purchase decision?
• What matters most: price, quality, speed, brand, reliability, compliance?
• How often do customers switch?
• What happens if the product fails?
• Is the product mission-critical but low-cost relative to the customer’s total cost?

Supplier power

• What are the key inputs?
• Are inputs commodities?
• Can the company buy directly from suppliers or only through distributors?
• Does scale create procurement advantage?
• Are there single-source supplier risks?

Regulation

• Does regulation help or hurt?
• Does it create replacement demand?
• Could it make a product obsolete?
• Is regulation national, state-level, city-level, or customer-specific?

A good report does not treat “industry” as a generic TAM slide. For instance, in a propane-adjacent business, it tests whether propane demand is actually declining, whether tank demand differs from propane consumption, whether capex can be deferred in recessions, and whether regulation represents a multi-decade headwind or an immediate threat.

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6. How to analyse competitive advantage

Avoid generic words like “moat” unless you can prove the mechanism.

Use this test:

What can this company do that competitors cannot easily copy, and how does that show up in numbers?

Possible advantages:

Advantage	What to check	How it shows up financially
Scale purchasing	Input discounts, supplier terms, inventory access	Higher gross margin
Local density	Lower delivery/service cost	Higher EBIT margin
Brand	Repeat purchase, lower CAC, pricing premium	Gross margin + stable share
Switching costs	Customer retention, low churn	Stable revenue, pricing power
Network effect	More users improve product	Accelerating growth, high incremental margin
Regulation	Licenses, certifications, compliance barriers	Stable share, high returns
Process/culture	Faster execution, lower cost	Better margins, better ROIC
Capital allocation	Superior reinvestment	Long-term compounding

Identify the competitive advantage in practical operational terms: direct procurement scale, volume discounts, inventory access, reduced lead times, facility consolidation, or shared labour resources. That is more persuasive than saying “scale moat.”

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7. How to analyse capital allocation

This is one of the most important parts of the analysis.

Capital allocation means: what management does with every dollar of cash.

Track the last 5–10 years:

Operating cash flow
- Working capital investment
- Capex
- Acquisitions
- Dividends
- Buybacks
+ Debt raised
+ Equity issued
= Change in cash

Then judge each use of capital:

Use of capital	Good sign	Bad sign
M&A	Bought cheaply, clear synergies, high post-deal ROIC	Overpaid, empire building, no integration proof
Capex	Cost reduction, capacity at high returns	Growth capex with weak demand
Buybacks	Done below intrinsic value	Done to offset stock comp at high prices
Dividends	Paid only after reinvestment needs	Paid despite high-return opportunities
Debt	Used conservatively with stable cash flows	Used to force acquisitions
Equity issuance	Used for highly accretive deals	Used because balance sheet is weak

For roll-ups, build a table like this:

Deal	Date	Price	Revenue	EBITDA/EBIT/net income	P/S	P/E or EV/EBITDA	Strategic rationale	Expected synergy	Actual result

Then answer:

Is the company buying earnings cheaply because sellers are unsophisticated/distressed, or is it taking hidden risk that the market is correctly discounting?

For instance, analyze whether the company buys acquisitions at low multiples (e.g. 11x P/E) and reduces the effective multiple (e.g. to 7x) post-synergies; verify whether management focuses on capital returns and cost discipline rather than growth for growth’s sake.

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8. How to analyse management

Use four lenses.

A. Incentives

Check:

• Insider ownership as % of company.
• Insider ownership as % of personal net worth.
• Base salary vs equity exposure.
• Bonus metrics.
• Option strike prices.
• Open-market purchases/sales.
• Related-party transactions.

Good sign: management gets rich mainly if shareholders get rich.

Bad sign: management gets rich through salary, bonuses, stock comp, or related-party deals regardless of returns.

B. Track record

Ask:

• What did they inherit?
• What decisions did they make?
• Were returns driven by luck, cycle, leverage, or skill?
• Did they buy back stock when cheap?
• Did they issue stock intelligently?
• Did acquisitions work?
• How did they behave in downturns?

C. Operating culture

Use former employee and customer calls to test:

• Cost discipline.
• Customer focus.
• Talent quality.
• Decentralisation vs chaos.
• Integration capability.
• Willingness to admit mistakes.

D. Governance and key-person risk

Check:

• Board independence.
• Related-party links.
• Succession plan.
• Depth of management bench.
• Whether one person is too important.

Ensure management diligence is balanced: praise alignment, cost focus, and capital allocation track record, but flag weaker governance, key-person risk, or limited operational innovation.

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9. Risk framework

Do not list generic risks. Tie each risk to valuation.

For each risk, write:

Risk → Mechanism → Financial impact → Probability → What would prove us wrong

Example:

Risk type	Question	Model impact
Cyclicality	What happens in a recession?	Lower revenue, lower margin, lower multiple
Structural decline	Is the product becoming obsolete?	Lower terminal earnings/multiple
M&A execution	What if future deals are worse?	Lower reinvestment ROIC
Leverage	Can debt force bad decisions?	Equity downside / dilution
Customer concentration	Can a customer leave?	Revenue/margin shock
Input costs	Can costs be passed through?	Gross margin pressure
Regulation	Does regulation hurt demand?	Lower growth, capex needs
Key person	What if CEO leaves?	Lower multiple, worse capital allocation
Governance	Could insiders harm minorities?	Lower multiple / permanent impairment

A robust bear case does not merely state cyclical risks: for instance, it models actual NOPAT degradation (e.g., halving initially and recovering to down 25% over three years), assumes zero acquisition or growth capacity, and applies a lower multiple to estimate downside.

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10. Detailed valuation framework

The valuation of a compounding business is best structured as:

Equity value =
[Normalised current NOPAT + NOPAT from future capital deployment]
× fair EV/NOPAT multiple
- future net debt

This is the right framework for a compounder/roll-up. For other companies, the formula changes, but the principle stays the same: value the actual engine of value creation.

Step 1: Define the valuation unit

Choose the metric that best represents owner earnings.

Common choices:

Business type	Best valuation metric
Mature industrial	EV/EBIT, EV/NOPAT, DCF
Roll-up	EV/NOPAT + reinvestment model
Software	EV/FCF, DCF, revenue only if unprofitable
Bank	P/B, ROE, residual income
Insurer	P/B, combined ratio, investment income
Real estate	NAV, cap rates, FFO
Cyclical commodity	Mid-cycle EBITDA/EBIT
Conglomerate	Sum-of-the-parts

Select the valuation metric that best represents owner earnings (e.g. EV/NOPAT is often cleaner than P/E for serial acquirers because it focuses on operating cash earnings, capital structure, tax, capex vs D&A, and M&A).

Step 2: Build normalised current earnings

Start from reported numbers, then adjust.

Reported EBIT
+/- unusual items
+ run-rate EBIT from recent acquisitions
+ D&A minus maintenance capex, if D&A overstates true capex
- cash taxes
- minority interest
= normalised cash NOPAT

You need to decide:

• Is the latest year normal or abnormal?
• Are margins peak, trough, or mid-cycle?
• Are recent acquisitions fully reflected?
• Is capex temporarily low or structurally below D&A?
• Is working capital inflated or understated?
• Are there minority interests?
• Are leases treated consistently?

Step 3: Identify the key drivers

Do not model 50 assumptions. Identify the 5–7 that matter.

For roll-ups and serial acquirers:

1. Base revenue growth.
2. Normal EBIT margin.
3. Acquisition capacity.
4. Purchase multiple.
5. Post-acquisition margin improvement.
6. Reinvestment ROIC.
7. Exit multiple.
8. Leverage tolerance.

For a software company:

1. ARR growth.
2. Net revenue retention.
3. Gross margin.
4. Sales efficiency.
5. R&D/S&M leverage.
6. Churn.
7. Terminal FCF margin.

For a retailer:

1. Same-store sales.
2. Store count.
3. Gross margin.
4. Rent/labour leverage.
5. Inventory turns.
6. Unit economics per store.

Step 4: Select assumptions

Use an evidence hierarchy:

1. Hard history: 5–10 year financials.
2. Unit economics: price, cost, volume, margin.
3. Primary research: customers, competitors, former employees.
4. Industry data: shipment data, capex cycles, regulation.
5. Comparable companies: margin/ROIC/multiple boundaries.
6. Management guidance: useful but not enough alone.

Rules for assumptions:

• Use through-cycle numbers, not one good year.
• Anchor margins to unit economics.
• Anchor growth to demand drivers, not TAM.
• Use conservative multiples unless quality clearly deserves a premium.
• Separate organic growth from acquired growth.
• For roll-ups, never assume infinite reinvestment runway.
• For cyclicals, use mid-cycle earnings.

Step 5: Build scenarios

Use three cases.

Bear case

Purpose: estimate permanent capital loss.

Assumptions:

• Revenue decline.
• Margin compression.
• No M&A or poor M&A.
• Lower multiple.
• Higher leverage pressure.
• No heroic recovery.

Question:

Can I still survive if the thesis is partly wrong?

Base case

Purpose: expected outcome.

Assumptions:

• Reasonable continuation of current economics.
• Moderate reinvestment.
• No major multiple expansion unless justified.
• Conservative margin and growth.

Question:

What happens if the company simply keeps doing what it has already proven it can do?

Bull case

Purpose: identify optionality.

Assumptions:

• Faster growth.
• Better margins.
• Larger reinvestment runway.
• Multiple expansion.
• Strategic value / improved liquidity / index inclusion / sell-side coverage.

Question:

What upside exists if the market starts valuing the company correctly?

Step 6: Choose the valuation method

Use multiple methods, but make one primary.

Method	Use when	Weakness
EV/NOPAT	Stable cash-generative business	Multiple selection can be subjective
DCF	Long-duration cash flows with clear drivers	Very sensitive to terminal assumptions
SOTP	Different segments have different quality	Segment margins may be estimated
Acquisition value	Strategic buyer could pay	May overstate value if no buyer likely
Replacement cost / liquidation	Asset-heavy or distressed	Misses intangible value
P/E	Simple capital structure	Distorted by leverage/tax/accounting
EV/EBITDA	Capital-intensive or M&A comps	Ignores capex and working capital

Select the primary valuation method based on the company’s type (e.g. combining NOPAT with a capital deployment model for acquirers whose value depends heavily on redeploying FCF into future acquisitions).

Step 7: Estimate downside/upside

Use this structure:

Current market cap: X
Current net debt: Y
Current EV: X + Y

Bear case NOPAT: A
Bear case multiple: B
Bear case EV: A × B
Bear case equity value: Bear case EV - future net debt
Downside: Bear case equity value / current market cap - 1

Base case NOPAT: C
Base case multiple: D
Base case EV: C × D
Base case equity value: Base case EV - future net debt
Upside: Base case equity value / current market cap - 1
IRR: (future equity value / current market cap)^(1/years) - 1

The important part: use future net debt, not current net debt, because cash generation, acquisitions, dividends, and buybacks change the capital structure.

Step 8: Judge margin of safety

A good margin of safety is not just “stock is cheap.”

It means:

• Downside case is tolerable.
• Base case return is attractive.
• Upside does not rely only on multiple expansion.
• The company can survive bad years.
• Management is unlikely to destroy value.
• The balance sheet does not force dilution or asset sales.
• Key risks are identifiable and monitorable.

A practical hurdle:

Bear case: -20% to -35% over 3–5 years
Base case: +75% to +150%
IRR target: >15% to 20%
Probability-weighted return: attractive even with conservative assumptions

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11. Chronological analyst workflow

Follow this order when researching a new public company.

Step 1: Quick screen

Goal: decide whether the company is worth deep work.

Collect:

• Market cap, EV, net debt.
• 5-year revenue, EBIT, FCF.
• ROIC/ROE.
• Ownership.
• Valuation multiple.
• Stock chart.
• Segment mix.

Output:

One-sentence thesis:
“This might be interesting because _______.”

One-sentence risk:
“This might be a value trap if _______.”

Step 2: Read filings backwards

Read in this order:

1. Latest annual report.
2. Latest quarterly report.
3. Proxy/management information circular.
4. Last 3–5 annual reports.
5. Investor presentations.
6. Earnings call transcripts.
7. Acquisition announcements.
8. Insider ownership/transactions.

Output:

• Business description.
• Segment map.
• Financial history.
• Management timeline.
• Key accounting issues.

Step 3: Build the financial spine

Before deep qualitative work, build a simple model.

Tabs:

1. Historical financials.
2. Segment revenue/profit.
3. Balance sheet.
4. Cash flow.
5. ROIC/ROCE.
6. Debt and share count.
7. Valuation.
8. Scenario summary.

Do not overcomplicate it. You need a model that shows what matters.

Step 4: Identify the value driver

Ask:

• Is this about revenue growth?
• Margin expansion?
• Reinvestment?
• Recovery?
• Multiple re-rating?
• Asset value?
• Capital return?
• Hidden segment value?

Output:

The stock works if _______.
The stock fails if _______.
The market is missing _______.

Step 5: Segment the business

Break revenue/profit by segment.

For each segment:

• Product/service.
• Customer.
• Demand driver.
• Competitors.
• Margin.
• Growth.
• Capital intensity.
• Risks.

Output:

Segment A: high quality / growing / high ROIC
Segment B: declining but cash-generative
Segment C: cyclical / optionality

Step 6: Build unit economics

Pick the product/service that best explains the segment.

For each unit:

Price
- Raw materials / COGS
- Labour
- Shipping / fulfilment
- Sales cost
- Support / warranty
= gross profit

Then subtract allocated fixed costs to estimate EBIT contribution.

This is where insight is created. It lets you say why margins can rise or fall.

Step 7: Industry and competitor work

Research:

• Market size.
• Market growth.
• Fragmentation.
• Customer concentration.
• Supplier power.
• Regulatory risks.
• Competitor margins.
• Customer switching behaviour.

Best sources:

• Trade associations.
• Government datasets.
• Competitor annual reports.
• Industry publications.
• Product catalogs.
• Import/export records.
• Customer procurement documents.
• Expert calls.

Step 8: Primary research

Target sources:

Source	What to ask
Former employees	Culture, margin opportunities, integration, management quality, hidden problems
Customers	Why buy, alternatives, pricing, switching, product quality
Competitors	Market share, pricing discipline, cost advantages, reputation
Suppliers	Buying power, input costs, volume discounts, supply risk
Distributors	Sell-through, brand preference, channel economics
Management	Capital allocation, mistakes, incentives, acquisition criteria

Convert calls into insight:

Claim from source → triangulate with other sources → connect to model assumption

Example:

Former employees say steel purchasing improved after acquisition
→ customer/competitor confirms delivery speed improved
→ model assumes gross margin improvement from procurement and inventory scale

Step 9: Management and capital allocation

Build:

• Management timeline.
• Insider ownership table.
• Compensation table.
• Buyback/dividend/acquisition history.
• Capital allocation bridge.
• Major mistakes.

Output:

Management score:
Integrity: high/medium/low
Incentives: high/medium/low
Capital allocation: high/medium/low
Operating ability: high/medium/low
Succession risk: high/medium/low

Step 10: Valuation and scenarios

Build:

• Current economics valuation.
• Base case.
• Bear case.
• Bull case.
• Sensitivities.

Sensitivity table should include:

• Margin.
• Growth.
• Multiple.
• Reinvestment ROIC.
• Leverage.
• Acquisition pace.

Step 11: Variant view and catalyst

Answer:

• Why is the stock mispriced?
• What does the market believe?
• What do you believe instead?
• What evidence would change the market’s view?
• Is a catalyst necessary?

Mispricing sources:

• No sell-side coverage.
• Small cap / illiquid.
• Complex segment reporting.
• Ugly industry.
• Temporary earnings issue.
• Misunderstood accounting.
• Underappreciated management.
• Recent controversy.
• Forced selling.
• Hidden asset.
• Overstated risk.

Step 12: Write the report

Write only after the model and research are done.

Structure:

1. Conclusion first.
2. Then evidence.
3. Then valuation.
4. Then risks.
5. Then why the opportunity exists.

Every section should follow:

Claim → Evidence → Financial implication

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12. Reusable report template

Use this template for any public company.

[Company Name] Investment Report

1. Situation Overview

• Ticker:
• Price:
• Market cap:
• Enterprise value:
• Net debt:
• Insider ownership:
• Current multiple:
• Normalised earnings:
• Expected 3–5 year IRR:
• Downside case:
• Upside case:

Thesis in one paragraph:

[Company] is attractive because [core value driver]. The market is missing [variant view]. The estimated intrinsic value is [range], implying [upside] over [time horizon], while downside is [downside] because [bear case protection].

Key insights:

1. [Insight 1: business quality]
2. [Insight 2: reinvestment / moat / industry]
3. [Insight 3: management / valuation / mispricing]

2. Methodology

Research completed:

• Filings reviewed:

• Transcripts reviewed:

• Investor presentations:

• Competitor filings:

• Industry reports:

• Primary calls:

  • Former employees:
  • Customers:
  • Competitors:
  • Suppliers/distributors:
  • Management:

• Alternative data:

• Site visits/channel checks:

Important note:

No material non-public information was used.

3. Business Overview

Explain:

• What the company sells.
• Who buys it.
• Why customers buy.
• How the company makes money.
• Segment mix.
• Geographic mix.
• Revenue model.
• Cost structure.
• Capital intensity.

4. Economic Snapshot

Include table:

Metric	Value	Comment
Revenue
Gross margin
EBIT margin
FCF margin
ROIC/ROCE
Working capital / sales
Capex / D&A
Net debt / EBITDA
Insider ownership

Then explain:

• Are returns attractive?
• Are earnings cash-like?
• Is capital intensity high or low?
• Are margins sustainable?

5. Segment Deep Dive

For each major segment:

Segment name:
% of revenue:
% of profit:
Products:
Customers:
Demand drivers:
Competitors:
Margin:
Growth:
Capital intensity:
Key risk:
Investment conclusion:

6. Unit Economics

Create a simple product-level table:

Item	Current	Normalised	Bull case
Price
Volume
Revenue
Materials
Labour
Shipping
Other COGS
Gross profit
Gross margin
EBIT contribution

Then explain which inputs matter most.

7. Industry Structure

Answer:

• Is the market growing, stable, or declining?
• Is demand cyclical or recurring?
• Who are the competitors?
• Is the market fragmented?
• Is there pricing power?
• Are customers concentrated?
• Are suppliers powerful?
• What regulation matters?
• What is misunderstood by investors?

8. Competitive Advantage

State the moat clearly:

The company’s advantage is [specific mechanism], which shows up as [financial evidence].

Then test durability:

• Can competitors copy it?
• Does it strengthen with scale?
• Does it survive downturns?
• Does it survive management change?
• Does it require constant reinvestment?

9. Management and Capital Allocation

Include:

• Management background.
• Ownership.
• Compensation.
• Insider buying/selling.
• Board quality.
• Governance concerns.
• Capital allocation history.
• Acquisition record.
• Buyback/dividend history.
• Mistakes.

Conclusion:

We are / are not comfortable underwriting management because _______.

10. Valuation

A. Current economics

Reported EBIT
+/- normalisations
+ run-rate acquisitions
+/- D&A vs maintenance capex adjustment
- tax
- minorities
= normalised cash NOPAT

Then:

Current EV / normalised NOPAT = current multiple

B. Forecast

Forecast:

• Revenue.
• Margin.
• NOPAT.
• FCF.
• Net debt.
• Reinvestment.
• Share count.

C. Scenarios

Case	NOPAT	Multiple	EV	Net debt	Equity value	Upside/downside	IRR
Bear
Base
Bull

D. Sensitivities

Use a table for:

• Margin vs multiple.
• Growth vs multiple.
• ROIC vs reinvestment runway.
• Bear earnings vs bear multiple.

11. Risks

For each risk:

Risk:
Why it matters:
Probability:
Financial impact:
Mitigant:
What would prove us wrong:

12. Variant View and Catalyst

Answer:

• What does the market think?
• What is the variant view?
• Why does the gap exist?
• What closes the gap?
• Is the catalyst necessary?

Catalysts can include:

• Earnings growth.
• Margin recovery.
• Debt paydown.
• New disclosure.
• Sell-side coverage.
• Index inclusion.
• Investor day.
• Asset sale.
• Buyback.
• Strategic acquisition.
• Spin-off.
• Regulatory clarity.

13. Final Investment View

End with:

We believe [Company] is worth [value range] because [reason].
At today’s price, the stock offers [upside] with [downside] in the bear case.
The key thesis monitor is [metric].
We would be wrong if [clear falsification condition].

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13. The most important habit

For every section, force yourself to answer:

So what? How does this change intrinsic value?

Good research is not collecting facts. Good research is converting facts into valuation-relevant insight.

A successful investment writeup works because nearly every section connects back to one question:

Can management keep redeploying capital at high returns, and is the market underpricing that?